Sierra Wireless reported results for its first quarter ending March 31, 2018, including revenue of $186.9 million, a 15.9 percent increase compared to the $161.2 the company made in the first quarter of 2017.

Product revenue was $162.9 million, up 7.8 percent from the previous year’s quarter, and services and other revenue was $24 million, up 138.6 percent from the same quarter in 2017.

Quarterly revenue was $135.2 million for OEM solutions, up 2.1 percent from $132.4 million in the previous year quarter; $29.2 million for enterprise solutions, up 34.5 percent from $21.7 million in the previous year’s quarter; and $22.5 million for internet of things (IoT) services, up 217.6 percent from $7.1 million from Q1 2017. The IoT services results include the first full-quarter contribution from Numerex, which Sierra purchased last year.

“In the first quarter of 2018, we delivered strong year-over-year revenue growth in our higher margin enterprise solutions and IoT services lines of business,” said Sierra President and CEO Jason Cohenour. “With the acquisition of Numerex, we have added significant scale to our recurring revenue base and IoT services capabilities. We expect to leverage our stronger IoT services business platform to expand our leadership position in device-to-cloud solutions for the IoT.”

Under generally accepted accounting principles (GAAP), gross margin for the quarter was $62.1 million, or 33.2 percent of revenue for the quarter, compared to $55.5 million, or 34.4 percent in the previous year’s quarter.

Operating expenses were $72 million and loss from operations was $9.9 million in the quarter, compared to operating expenses of $56.8 million and loss from operations of $1.3 million in the previous year’s quarter.

Net loss was $8.4 million, or 23 cents per diluted share in the quarter, compared to a net loss of $92,000, or 0 cents per diluted share, in the previous year’s quarter.

Cash and equivalents at the end of the first quarter were $70.6 million, representing an increase of $5.6 million compared to the end of the fourth quarter of 2017. The increase in cash was primarily due to cash flows from operating activities partially offset by capital expenditures.

For the second quarter of 2018, Sierra expects revenue to be in the range of $195 million to $203 million and non-GAAP earning per share to be in the range of 17 to 25 cents.

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